Ethiopia has launched the Ethiopian Securities Exchange (ESX), marking a transformative moment for its economic and financial systems after nearly 50 years without a stock market. The exchange officially began operations on January 10, a development hailed as a “historic milestone” by Prime Minister Abiy Ahmed.
The establishment of the ESX reflects Ethiopia’s efforts to modernize its economy and attract investments. Prime Minister Ahmed emphasized the significance of this step in diversifying the country’s financial sector and fostering economic growth.
The ESX’s initial capital-raising goals have already exceeded expectations. Tilahun Kassahun, managing director of the new exchange, revealed that the ESX had initially aimed to raise 500 million birr ($4 million). By August, however, it had secured over 1.26 billion birr, nearly $10 million, signaling strong investor confidence in Ethiopia’s economic potential.
This marks the first stock exchange in Ethiopia since the closure of the Addis Ababa Share Dealing Group in 1974, following the overthrow of Emperor Haile Selassie. The absence of a stock market for nearly five decades has been a significant gap in Ethiopia’s financial infrastructure.
The ESX is expected to play a crucial role in mobilizing capital, enhancing financial inclusion, and providing Ethiopian businesses with access to diversified funding sources. It will also enable investors to engage directly in the country’s economic development by purchasing shares in local companies.
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